Despite its massive global recall, Toyota reported a profit last quarter as the Japanese automaker offered the biggest incentives in its history and tagged along on the global auto sales recovery.

Toyota President Akio Toyoda still said that Toyota remains in “stormy waters,” but said he was “sincerely grateful” to the company’s constituencies for their efforts in helping Toyota “return to its normal state as soon as possible.”

Toyota Motor Corp reported that January-March profit totaled 112 billion yen ($1.2 billion) compared with a 766 billion yen loss the year before. It said that quarterly revenue was up 5.28 trillion yen ($57 billion) from 3.54 trillion yen the year before.

Toyota is forecasting even better results for the fiscal year ending March 2011, projecting an annual profit increase of 48 percent to 310 billion yen ($3.3 billion).